Dolby Laboratories Inc

Dolby Laboratories Inc. (DLB) soared the most in more than five years after Microsoft Corp. (MSFT) chose the sound company to provide audio for Windows 8 for tablets and computers, software that’s expected this year.
Dolby, which this week won the naming rights for the theater that hosts the Oscars, said the Microsoft deal won’t add to fiscal 2012 earnings, since the product isn’t expected to ship until the company’s 2013 period. Dolby narrowed its forecast for the current year.

“The profile of the PC segment is materially improved by the Win8 deal and the company is intensifying its focus on new initiatives,” including mobile and other devices that deliver Internet content, Michael Olson, a Piper Jaffray Cos. analyst, said in a note.

Dolby “is still facing headwinds from flat or declining end-market unit shipments in some segments,” said Olson, who rates (DLB) the shares the equivalent of hold.

The company narrowed its full-year sales guidance to as much as $960 million for the year ending Sept. 30. It previously predicted (DLB) revenue of as much as $970 million.

“Dolby Digital Plus on Windows 8 will enable more people to enjoy cinematic sound anytime, anywhere, and on any device,” Ramzi Haidamus, executive vice president, sales and marketing, said in a statement yesterday.